Law Gives Erie County Greater Options When Selling Bonds, Will Save Taxpayer Dollars Through Reduced Interest Costs
Erie County, NY—Today, Erie County Comptroller Mark Poloncarz announced that legislation to allow Erie County (the “County”) greater flexibility when selling serial bonds and, in turn, save taxpayers’ dollars through reduced interest costs has been signed into law by New York State Governor Andrew Cuomo.
For many years, with the support of the local legislative delegation, Erie County has annually requested permission to market serial bonds at private sale for one-year periods. A.4215/S.2787, allows the County to do such through June 30, 2012.
“I would like to thank Senator Patrick Gallivan and Assemblyman Robin Schimminger for sponsoring this legislation, and Governor Andrew Cuomo for signing it into law,” said Poloncarz. “Erie County will now be allowed to adjust sale dates, coupon rates and maturities to ensure a more successful sale of bonds, which will, in turn, save our constituents money through reduced interest costs.”
Without legislative approval, pursuant to Local Finance Law Section 54.50, the County is unable to market such bonds at private sale and through negotiated authority, such as a sale of bonds to the Erie County Fiscal Stability Authority. By receiving state authorization, the County receives the option of selling bonds via negotiated agreement. Through such flexibility, the County is able to enjoy greater leverage and options when selling bonds and notes, which includes attaining better (lower) pricing from financial institutions and better terms to the County and to the taxpayers.